Indemnity
Visão Geral
Insurance exists to put you back on your feet, not to make you rich. That single idea is the principle of indemnity, and it quietly governs almost every claim ever paid. It explains why a three year old laptop is not replaced with a brand new one, why a trader who insures a shop for less than it is worth recovers less than the fire destroyed, and why the insurer, not the insured, usually decides whether to repair or to pay cash.
In this lesson you will learn what indemnity really means, the four ways an insurer can deliver it, and the limits that decide how much money actually reaches the claimant: the sum insured, average, the excess and the franchise. You will work through the calculations examiners set every year, meet the two classes of insurance to which indemnity does not apply at all, and learn the traps that cost candidates easy marks.
Objetivos
- Define indemnity and explain how it restores the insured to the former financial position
- Explain why indemnity prevents the insured from profiting from a loss
- Describe the methods of providing indemnity: cash payment, repair, replacement and reinstatement
- Explain the operation of average, excess, franchise and the sum insured as limits on indemnity
- Identify the contracts of insurance to which indemnity does not apply and explain why
Mapa mental
Este tema esta mapeado para mostrar como as ideias se ligam.
Cartoes
Pratica rapida de memoria sobre o que e avaliado neste tema.
Nota de Aula
Registe-se para Continuar
Crie uma conta gratuita para aceder a todos os recursos de aprendizagem, perguntas práticas e acompanhar o seu progresso.
Avaliação da Lição
Parabéns por concluir a lição em Indemnity. Agora que você explorou o conceitos e ideias-chave, é hora de colocar seu conhecimento à prova. Esta seção oferece uma variedade de práticas perguntas destinadas a reforçar sua compreensão e ajudá-lo a avaliar sua compreensão do material.
Irá encontrar uma mistura de tipos de perguntas, incluindo perguntas de escolha múltipla, perguntas de resposta curta e perguntas de redação. Cada pergunta é cuidadosamente elaborada para avaliar diferentes aspetos do seu conhecimento e competências de pensamento crítico.
Use esta secção de avaliação como uma oportunidade para reforçar a tua compreensão do tema e identificar quaisquer áreas onde possas precisar de estudo adicional. Não te deixes desencorajar pelos desafios que encontrares; em vez disso, vê-os como oportunidades de crescimento e melhoria.
- The principle of indemnity means that the insured is: A. Paid the original cost of the property B. Restored to the same financial position held immediately before the loss C. Paid the cost of replacing the property with a new one D. Paid the sum insured in every case Answer: B
- Which of the following is NOT a method of providing indemnity? A. Cash payment B. Repair C. Replacement D. Subrogation Answer: D
- Property worth 2,000,000 naira is insured for 1,500,000 naira under a policy subject to average. A fire causes a loss of 800,000 naira. How much will the insurer pay? A. 800,000 naira B. 600,000 naira C. 500,000 naira D. 1,500,000 naira Answer: B
- Which of the following is NOT a contract of indemnity? A. Fire insurance B. Motor own damage insurance C. Life assurance D. Marine cargo insurance Answer: C
- The first amount of every claim which the insured must bear is called the: A. Franchise B. Excess C. Salvage D. Premium Answer: B
Registe-se para Continuar
Crie uma conta gratuita para aceder a todos os recursos de aprendizagem, perguntas práticas e acompanhar o seu progresso.
Registe-se para Continuar
Crie uma conta gratuita para aceder a todos os recursos de aprendizagem, perguntas práticas e acompanhar o seu progresso.
Livros Recomendados
Questões de revisão
Pergunta-se como são as perguntas anteriores sobre este tópico? Aqui estão várias perguntas sobre Indemnity de anos passados.
Pergunta 1 Relatório
List and explain five principles of insurance.
Detalhes da Resposta
Five principles of insurance
- Utmost good faith (uberrimae fidei): Both parties to the contract, and especially the proposer, must disclose all material facts truthfully and completely. Concealment or misrepresentation of a material fact makes the contract voidable at the option of the insurer.
- Insurable interest: The insured must have a legal or financial relationship with the subject matter such that he benefits from its safety and suffers loss from its damage or destruction. Without insurable interest the contract is void because it would amount to gambling.
- Indemnity: The insurer undertakes to restore the insured, so far as money can, to the exact financial position he occupied immediately before the loss, no better and no worse. This prevents the insured from making a profit out of a loss. (It does not apply to life and personal accident.)
- Subrogation: After indemnifying the insured, the insurer takes over the insured's legal rights and remedies against any third party responsible for the loss, so that the insurer can recover its outlay. This supports the principle of indemnity.
- Contribution: Where the same risk is insured with more than one insurer, each insurer shares the loss rateably in proportion to the sum it insured, so that the insured recovers only the actual loss once and not more.
A further principle is proximate cause, under which the insurer is liable only where the nearest, most effective cause of the loss is a peril insured against.
Registe-se para Continuar
Crie uma conta gratuita para aceder a todos os recursos de aprendizagem, perguntas práticas e acompanhar o seu progresso.